What Is The Difference Between A Vested Remainder And A Contingent Remainder?

What is a remainder interest?

A remainder interest gives the holder the right to take ownership when the life estate has ended.

The home will need to be appraised at the time of the gift to determine the value of both the life estate and the remainder interest..

What does estate in reversion mean?

A reversion in property law is a future interest that is retained by the grantor after the conveyance of an estate of a lesser quantum that he has (such as the owner of a fee simple granting a life estate or a leasehold estate). … The testator may retain the reversion in the estate or give it to another individual.

What is a vested remainder subject to divestment?

A vested remainder is the absolute right to receive title when a presently existing interest in real property ends. … Vested remainders subject to (complete) divestment – “To A for life, then to B and his heirs, but if B marries Z, then to C and his heirs.” Based on a condition subsequent.

Can you transfer a contingent remainder?

Although it was held that a contingent remainder could not be transferred inter vivos, nevertheless, if the contingent remainder- man attempted to alienate and the remainder subsequently vested in his lifetime, the remainder under certain circumstances passed by way of estoppel to the alienee.

Is a remainder interest a present interest?

A vested remainder is a future interest to an ascertained person, with the certainty or possibility of becoming a present interest subject only to the expiration of the preceding property interests.

What is a Indefeasibly vested remainder?

A vested remainder may be indefeasibly vested, meaning that it is certain to become possessory in the future, and cannot be divested. An example, O conveys to “A for life, then to B and B’s heirs.” B has an “indefeasibly vested remainder” certain to become possessory upon termination of A’s life estate.

What is a fee simple determinable?

a determinable fee simple estate is one that automatically terminates upon the occurrence of a specified event or the cessation of use for a specified purpose and will revert to the grantor without any entry or other act…

What is a remainder property law?

A remainder is a future interest in land. It is the right to own and possess the land after the fixed interest of current holder expires. Thus, a remainder can follow a life estate or a term of years. … A person who has a remainder is called a remainderman.

What is an alternative contingent remainder?

A pair of remainders that have opposite conditions precedent. wills. property & real estate law.

What is the difference between a contingent remainder and an executory interest?

A contingent remainder is going to flow from the natural termination of the previous estate (as long as the condition is met). … An executory interest is going to cut short the previous estate before it would have ended naturally. The condition that cuts short the estate is a condition subsequent.

Can you convey a future interest?

Because they convey ownership rights, future interests can usually be sold, gifted, willed, or otherwise disposed of by the beneficiary (but see Vesting below). Because the rights vest in the future, any such disposition will occur before the beneficiary actually takes possession of the property.

Who may hold a reversionary interest?

A landowner who is concerned about the future use of his land can donate or sell the land on a conditional rather than absolute basis. A reversionary interest is created by a deed that reserves to the grantor a future ownership right upon the occurrence of some condition.